FOS Capital Ltd (FOS) AI Stock Analysis

• Market Cap: AU$17.18M
• Dividend Yield: 4%
• Average Volume (3M): 19.94K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.39
• Revenue Growth: 3.94%
• EPS Growth: 45.76%
• Country: AU
• Employees: 75
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 68,734,474
• 10 Day Avg. Volume: 29,219
• 30 Day Avg. Volume: 19,939
• PEG Ratio: 0.40
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 7.58
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: AU$0.50 ▲(100.00% Upside)

FOS Capital Ltd's strong financial performance, characterized by robust revenue growth and improved profitability, is the most significant factor driving the score. The valuation is fair with an attractive dividend yield, adding to the stock's appeal. However, technical indicators suggest a bearish trend, which tempers the overall score.

Positive Factors

Revenue Growth

Significant revenue growth indicates successful investment strategies and market expansion, enhancing long-term business sustainability.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, crucial for sustaining growth and managing debt.

Operational Efficiency

Improved margins reflect efficient operations, enhancing profitability and competitive positioning in the long term.

Negative Factors

Net Profit Margin

Despite improvements, the relatively low net profit margin suggests limited profitability, which could hinder reinvestment and growth.

Cash Flow Management

Inconsistent cash flow management could impact liquidity and financial stability, necessitating careful oversight to ensure ongoing operations.

Debt Monitoring

While current debt levels are manageable, vigilant monitoring is essential to prevent financial strain and ensure long-term stability.

FOS Capital Ltd Business Overview & Revenue Model

Company Description

FOS Capital Ltd, through its subsidiaries, manufactures and distributes commercial luminaires, outdoor fittings, linear extruded lighting, and architectural lighting solutions in Australia and New Zealand. Its brand portfolio includes JSB Lighting, FORMA Lighting, VEKTA PROFILES, FREND Lighting, MEGABAY, and LIGHTING YOUNGKONG. The company was incorporated in 2019 and is based in Richmond, Australia. FOS Capital Limited is a subsidiary of SKM Investment Group Pty Ltd.

How the Company Makes Money

FOS Capital Ltd generates revenue primarily through capital appreciation and management fees associated with its investment funds. The company earns a percentage of the profits from successful exits of its portfolio companies, including initial public offerings (IPOs) and mergers and acquisitions (M&A). Additionally, FOS charges management fees based on the assets under management (AUM) in its venture capital and private equity funds. Strategic partnerships with other investment firms and industry experts also bolster its investment strategy, allowing FOS to access exclusive deals and enhance its portfolio's performance, contributing to its overall earnings.

FOS Capital Ltd Financial Statement Overview

Summary

FOS Capital Ltd shows strong revenue growth and improved profitability, supported by effective cost management and operational efficiency. The balance sheet is robust with a healthy equity base and manageable debt levels. Cash flow generation has improved significantly, although historical fluctuations suggest the need for ongoing cash management.

Income Statement

FOS Capital Ltd has demonstrated strong revenue growth, with a 74.3% increase in the latest year. Gross profit margin improved to 44.2%, indicating effective cost management. The net profit margin increased to 3.7%, showing enhanced profitability. EBIT and EBITDA margins also improved, reflecting operational efficiency. However, the net profit margin remains relatively low, suggesting room for further profitability improvements.

Balance Sheet

The company's debt-to-equity ratio decreased to 0.48, indicating a balanced approach to leveraging. Return on equity is stable at 6.6%, reflecting consistent shareholder returns. The equity ratio stands at 55%, showing a strong equity base relative to total assets. While the balance sheet is solid, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

FOS Capital Ltd achieved a 42.4% growth in free cash flow, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.32, and the free cash flow to net income ratio is 0.99, suggesting efficient cash conversion. However, the company experienced negative operating cash flow in previous years, highlighting the need for consistent cash flow management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.49M	25.49M	24.53M	17.12M	13.51M	8.16M
Gross Profit	11.28M	11.28M	9.15M	5.79M	5.72M	3.28M
EBITDA	1.96M	3.44M	2.46M	1.58M	1.29M	1.46M
Net Income	932.65K	932.65K	632.16K	583.94K	348.94K	742.11K
Balance Sheet
Total Assets	25.67M	25.67M	21.78M	13.62M	11.79M	10.98M
Cash, Cash Equivalents and Short-Term Investments	2.50M	2.50M	1.68M	1.41M	1.89M	2.97M
Total Debt	6.72M	6.72M	5.20M	1.09M	1.46M	1.31M
Total Liabilities	11.55M	11.55M	11.87M	4.34M	4.25M	4.06M
Stockholders Equity	14.12M	14.12M	9.91M	9.29M	7.54M	6.92M
Cash Flow
Free Cash Flow	2.29M	2.29M	949.96K	-347.76K	609.17K	-902.38K
Operating Cash Flow	2.30M	2.30M	1.01M	-115.56K	704.63K	-902.38K
Investing Cash Flow	-4.32M	-4.32M	-2.33M	-830.45K	-849.76K	1.20M
Financing Cash Flow	2.81M	2.81M	1.59M	441.96K	-831.95K	2.02M

FOS Capital Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:FOS, the sentiment is Negative. The current price of 0.25 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.26, and below the 200-day MA of 0.29, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.18 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:FOS.

FOS Capital Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FOS	72 Outperform	AU$17.18M	14.53	7.76%	4.00%	3.94%	45.76%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RFT	43 Neutral	AU$5.53M	-16.67	-4.55%	―	-39.95%	-220.00%
H2G	42 Neutral	AU$6.25M	-5.56	-35.32%	―	―	47.06%
EGY	38 Underperform	AU$10.50M	-0.84	―	―	-37.44%	10.36%

FOS Capital Ltd Corporate Events

FOS Capital Announces Change of Auditor to Support Growth Strategy

FOS Capital Limited has announced a change in its auditing firm, with William Buck Audit resigning and Connect National Audit Pty Ltd being appointed as the new auditor, pending shareholder approval. This change is part of the company’s ongoing efforts to enhance its operational framework as it continues to pursue growth in a fragmented market, aiming for a significant increase in market share.

FOS Capital Director Increases Shareholding

FOS Capital Ltd announced a change in the director’s interest, specifically regarding Mr. Alexander Beard’s acquisition of 150,000 ordinary shares through an on-market purchase. This change increases his total holdings to 480,000 shares. The transaction, valued at $39,924.90, reflects a significant increase in Mr. Beard’s investment in the company, potentially indicating confidence in the company’s future prospects.

FOS Capital Ltd Secures Shareholder Approval for Key Resolutions at 2025 AGM

FOS Capital Ltd announced that all resolutions proposed at its 2025 Annual General Meeting were passed by the requisite majority. This includes the adoption of the remuneration report, re-election of a director, and ratification of share issues to vendors, employees, and sophisticated investors, indicating strong shareholder support for the company’s strategic initiatives.

FOS Capital Ltd Announces Quotation of New Securities on ASX

FOS Capital Ltd has announced the application for quotation of 1,488,373 ordinary fully paid securities on the Australian Securities Exchange (ASX), with an issue date of October 27, 2025. This move is part of a dividend or distribution plan, potentially impacting the company’s market presence and offering stakeholders an opportunity to assess the company’s financial strategies.

FOS Capital Announces DRP Issue Price for FY2025

FOS Capital Limited has announced the Dividend Reinvestment Plan (DRP) issue price of $0.28 per share for the final dividend of FY2025, calculated based on the average market price over a specified period. The DRP shares, set to be issued on October 27, 2025, will hold equal ranking with existing securities, reflecting the company’s strategic financial management and commitment to shareholder value.

FOS Capital Ltd Announces 2025 Annual General Meeting Details

FOS Capital Ltd has announced its 2025 Annual General Meeting, which will take place on October 28, 2025, in Melbourne. The meeting will cover several key business items, including the re-election of executive Director Michael Monsonego, the adoption of the Remuneration Report, and the approval of additional placement capacity. Shareholders are encouraged to participate either in person or by proxy.